1099-Misc Monthly Schedules and Online Reports
The following is the approximate schedule for the 1099-MISC, which starts at the end of one, calendar year and ends the first part of the next calendar year. Your agency has various obligations for information review during the process. The actual timing could vary from this schedule.
Month
Activity
September - November
The SCO Receives IRS Publication 1220 and state tax commission change information.
These publications identify changes for reporting for the calendar year. The SCO must update STARS and/or the 1099 System by December with any needed changes. If your agency does any other type of tax reporting, you should review the appropriate publications for the type of forms you issue.
October
The SCO Deletes the previous year’s 1099 information.
The SCO keeps the 1099-MISC information on the 1099 System for about a year. At the beginning of the new 1099 season, the prior year’s information is purged from the 1099 System.
November
Agency receives 1099-MISC survey/attestation and instruction letters.
The SCO will send the yearly survey/attestation and instruction letters to the agency with information on the 1099-MISC process and deadlines for filing. The agency must complete the 1099-MISC survey letter/attestation letter, have it signed by an authorized person, and return it to the SCO by the deadline.
SCO extracts preliminary 1099-MISC STARS data.
After the loading of the extract, the 1099 System creates preliminary reports, which are mailed to the agencies for review. University information is not included in the extract.
SCO runs a report of exception recipients by Form Type and works with agencies.
The SCO personnel will review the exception information on report DA802067 (Exception Report of 1099 Recipients by Form Type). If exception problems are found, we may contact your agency for further information. Corrections to the Vendor Edit Table must be made before calendar year-end.
Agency receives preliminary reports with instructions and deadline information.
Your agency will receive report DA802068 (Report of Possible 1099 Recipients by Agency). The SCO will send instructions on what to look for and how to make the corrections. These preliminary reports are run so your agency will have time to make corrections to the STARS files before final processing at the end of December. The SCO contact personnel will be listed in the instruction letter.
December
The SCO Follows-up on 1099 survey/ attestation letters.
The SCO personnel will contact your agency if we have not received your 1099 survey/attestation letter by the deadline noted in the letter.
The SCO Updates the Organization Control table.
The SCO personnel will update the OC (Organization Control) Table based on the information on the 1099 survey/attestation letter. The SAO EIN Indicator must be “Y” for the 1099 System to extract data for your agency. If the SCO does not submit the 1099-MISCs for your agency, this indicator is an “N”. Universities are currently the only agencies set to “N”.
Agency submits and the SCO updates manual 1099-MISC information.
Your agency should submit all manual 1099-MISC information to the SCO by the end of December. If the information is not available by the end of December, notify the SCO of the delay. To have the manual information included in the 1099-MISC processing, your agency must send the corrections to the SCO shortly after December closes. The specific due dates will be in the instruction letter.
January
SCO deletes the preliminary 1099 data.
The SCO will clear all information used for the preliminary reports sent out the end of October so that final STARS data can be loaded.
SCO extracts the final 1099-MISC STARS data.
Once STARS closes for December processing, final STARS data is loaded into the 1099 System. All changes to the information after this load will be by manual entries directly into the 1099 System.
SCO contacts agencies on outstanding Manual 1099-MISCs.
After December closes, agencies that have notified the SCO of delays in submitting manual 1099-MISCs will be contacted for the anticipated submittal date.
SCO Runs a new Report of Exception report of 1099 Recipients by Form Type.
The SCO personnel will review the exception information to identify any exception problems that have occurred since the October review. If the SCO finds additional problems, they will contact your agency for further information. Corrections may need to be made to the Vendor Edit Table before the SCO prints the 1099-MISC forms.
Agency receives new preliminary review reports with instructions and deadlines.
Your agency will receive a new DA802068 (Report of Possible 1099 Recipients by Agency) that will contain all of the information for the previous calendar year. You will have a short time in which to review and submit updates to the State Controller’s Office for manual input to the 1099 System. This will be the last agency review before the SCO issues the 1099-MISC form to the vendors.
SCO enters final changes to the 1099 system and the Vendor Edit Table.
Once the SCO receives the final changes from the agencies, they will manually update 1099 System and Vendor Edit Table before sending out the 1099-MISC forms to the vendors.
SCO Runs 1099 system jobs to generate 1099-MISC forms.
After all manual updates are complete the 1099 System will generate 1099-MISC forms.
SCO sends 1099-MISC reports to agencies showing information on the 1099 system.
Agencies will receive a new DA802068 report (Report of Possible 1099 Recipients by Agency) that will contain all of the information including manual updates for the calendar year. You can use this report to answer vendor needs questions about the 1099-MISC. There may be vendor information on the report even though a 1099-MISC was not generated to the vendor due to the over $600 rule. If you have questions, please contact the SCO 1099 contact person.
SCO mails 1099-MISC forms to vendors by January 31st.
The SCO must mail the 1099-MISC forms by January 31st in order to avoid IRS penalties. The SCO normally runs the job to generate the 1099-MISC forms a couple of days early just in case problems arise in processing.
February
Agency/SCO answers vendor questions and submits manual changes to the SCO.
Once the vendors start receiving their 1099-MISC forms, they may contact either your agency or the SCO. The SCO’s phone number is on the 1099-MISC. If a vendor needs an explanation or did not get a 1099-MISC, they may contact the agency with which they did business.
Agency submits requests for additional manual 1099-MISCs.
If you find that your agency has submitted incorrect information on the vendor, you will need to contact the SCO in writing with the corrected information. The SCO will issue a manual 1099-MISC as a “new” or “change”. We will also update the Vendor Edit Table to reflect any needed changes. The SCO will manually update the 1099 System with the manual information so that correct information goes to the IRS. The SCO also receives returned 1099-MISC forms from vendors identifying them as Corporations. We will change the 1099 indicator on the Vendor Edit Table and will delete the vendor’s 1099-MISC information on the 1099 System before submission to the IRS.
SCO runs final tape to be submitted to the IRS and State Tax Commission.
During the last few days of February, the SCO will run final tapes and submit them to the IRS and the State Tax Commission. These tapes must be mailed by February 28th – unless the SCO requests and is granted a filing extension to March 31st.
February or March
SCO sends final 1099-MISC information reports to agencies.
The SCO will send your agency a final DA802068 (Report of Possible 1099 Recipients by Agency) that will contain all of the information for the previous calendar year. Timing of this report will be determined yearly, based on any IRS extension.
After February 28
Agency sends in and the SCO updates additional manual 1099-MISC and does manual submissions to the IRS and State Tax Commission.
If vendors request extensions in filing, you not hear of a discrepancy until after February 28. Continue to submit additional manual changes to the SCO. The SCO will complete manual 1099-MISC and will manually report the information to the IRS and State Tax Commission before the next penalty deadline. If the IRS has granted a filing extension, the SCO will continue to update the 1099 System until filing with the IRS occurs.
Report Name
Description
DA802066
Report of Possible 1099 Recipients by Form Type (statewide)
Lists, in TIN order, all of the statewide information extracted from STARS and any other upload data such as lottery and deceased employee information. The report shows the TIN, the agency, the vendor name and address, and totals per 1099 box. The report totals by box, then accumulates the boxes by vendor to identify if the total meets the $600 threshold for 1099-MISC reporting. Since this is a statewide report, individual agencies should request the DA802068 instead of this report.
DA802068
Report of Possible 1099 Recipients by Agency
Lists, in TIN order, all of the agency information extracted from STARS and any other upload data such a lottery and deceased employee information. The report shows the TIN, the agency, the vendor name and address, and agency totals per 1099 box. These may not be reported on the 1099-MISC if the statewide total for the vendor is under $600.
DA802061
(SCO Only)
Report of Online 1099 Changes
Lists the manual changes made to the on-line 1099 System. Includes additions, changes, and deletions.
DA802067
Exception Report of 1099 Recipients by Form Type
Lists exceptions from the 1099 System that the SCO needs to review and fix as needed. This report would show records such as:
Invalid state code
Invalid 1099 agency
Amount problem, such as negative amounts
State employee (in Vendor 2 field)
DAFR0271
Vendor Edit Exception Report
Lists exceptions on the Vendor Edit Table such as:
1099 indicator not equal on all suffixes
Vendor type not equal on all suffixes
Vendor status not equal on all suffixes
No IRS Name and Address indicator
Job DA809245 can be run by accounting during the day.